CBI files 1st charge sheet against Nirav Modi

De Beers the world's largest diamond producer has said the business in the country will continue to grow this year

De Beers the world's largest diamond producer has said the business in the country will continue to grow this year

Around 10 days ago we had asked explanations from the two executive directors at the PNB and the current MD and CEO in Allahabad Bank.

Following the government's directive, which came within hours of the CBI filing a chargesheet in the country's biggest banking fraud case, the PNB board divested its two executive directors, K.V. Brahmaji Rao and Sanjiv Sharan, of all financial and executive powers. The charge sheet has been filed under sections of cheating and conspiracy of the Indian Penal Code and relevant sections of the Prevention of Corruption Act, 1988. "She along with other bank officials has been named in the chargesheet as they could not give satisfactory replies in regard to the case during questioning by the agency", the CBI added.

NEW DELHI: Allahabad Bank will hold its board meeting on Tuesday after the Finance Ministry's direction to take away all the powers of its MD and CEO Usha Ananthasubramanian.

Modi's group companies - Diamonds R US, Stellar Diamonds, and Solar Exports - are also named in the chargesheet as borrowers.

At the heart of the PNB fraud was the Society for Worldwide Interbank Financial Telecommunications (SWIFT) messaging system, which is used by banks worldwide to enable cross-border transactions.

Additionally, a separate chargesheet pertaining to the second FIR registered by the CBI will feature Mehul Choksi.

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"As on 31 March 2018, 28 accounts were falling under the purview of this framework for which bank has made provision of Rs 31.2 billion", PNB said.

The Reserve Bank has permitted PNB to make provisions against the fraud amount.

The CBI on Monday filed its first chargesheet in the PNB fraud case detailing the roles of Nirav Modi, his brother Nishal Modi and Subhash Parab, an executive in Nirav Modi's company. Since the bank's SWIFT, an global messaging system, was not integrated with its core banking system, the fraud went undetected for seven years.

In connection with the pleas filed on the Gitanjali Gems in the court, the ED said, "The Company cleverly veils any reference to Mehul Choksi, who left India in the twilight of the scam coming to the notice of the law enforcement agencies".

So far, 15 persons have been arrested while Modi and Choksi fled the country in January. Gokulnath Shetty, who was the deputy manager at PNB's Brady House branch, allegedly continued to issue fraudulent LoUs for seven years even after being warned by the RBI.

As a result, provisions for the bad loans jumped four-fold to Rs 16,202.82 crore for the quarter under review compared to Rs 4,910.39 crore parked aside in the same period a year ago.

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